John Gibson

John Gibson asked for more details on the counterparties associated with Enerflex's power generation contracts, both signed orders and future opportunities, specifically inquiring about counterparty risk and quality. He also asked if Enerflex's business is now optimally structured after the recent APAC divestiture, or if other geographies or areas are still under evaluation for potential changes.

Answer

Paul Mahoney (President and CEO, Enerflex) emphasized the critical importance of a disciplined approach to counterparty risk in the 'embryonic' power generation market, confirming that current and pursued projects involve very strong, well-developed relationships with high-quality counterparties (developers, hyperscalers). Regarding the business structure, Paul Mahoney stated that Enerflex continuously evaluates all geographies and business lines through a 'residual cash earnings' lens to create shareholder value, considering it part of normal operating discipline. Preet Dhindsa (SVP & CFO, Enerflex) added that the company has reduced its country presence from 27 to 17, and with the APAC divestiture, it will be around 14, with 7 core countries. He indicated that there are likely a few more non-core geographies to exit to further simplify and optimize operations, free up capital, and improve tax compliance.

John Gibson inquired about the counterparty risk associated with Enerflex's power generation contracts, both signed and prospective, and whether the company plans further geographic dispositions or business optimizations following the APAC divestiture.

Answer

Paul Mahoney, President and CEO, emphasized a disciplined approach to counterparty risk, confirming that recent and prospective power generation projects involve 'very, very strong' counterparties, including developers and hyperscalers. Preet Dhindsa, SVP & CFO, added that Enerflex has reduced its country presence from 27 to 17, and with the APAC divestiture, will be around 14, indicating that a few more non-core geographies may be evaluated for simplification and capital optimization.

John Gibson asked about the total volumes across RB Global's auto salvage business and its peers, especially considering the absence of catastrophic events in 2025. Gibson also sought the outlook for total salvage volumes incorporated into the company's 2026 expectations.

Answer

CFO Eric Guerin stated that RB Global does not break down its guidance to that level of detail but reiterated the company's expectation to continue gaining market share and growing faster than the overall market in salvage. CEO Jim Kessler added that the company's financials provide total unit volumes for automotive, but no further disclosure is offered.

John Gibson asked about the total volumes across the auto salvage business for RB Global and its peers, specifically considering the absence of catastrophic events in 2025. He also sought the company's outlook for total salvage volumes incorporated into its 2026 expectations.

Answer

Eric Guerin, CFO, RB Global, stated that the company does not break down its guidance to that level of detail but expects to continue gaining market share and growing faster than the market in salvage. Jim Kessler, CEO, RB Global, added that total unit volumes in automotive are provided in the financials, but no further disclosure is given.

John Gibson of BMO Capital Markets asked for a geographic or basin-level breakdown of where the 22 rig upgrades are targeted and inquired about the number of idle Precision rigs remaining in the Haynesville.

Answer

CFO Carey Ford stated that the upgrades are primarily targeted for basins with strong demand and a significant company presence, namely the Haynesville, Marcellus, Montney, and Canadian heavy oil regions. President and CEO Kevin Neveu added that Precision still has a 'large, high single digits' number of rigs idle in the Haynesville.

John Gibson from BMO Capital Markets asked about conversations with producers and the specific commodity price levels that might trigger significant changes in capital spending plans in Canada and the U.S.

Answer

CFO Carey Ford provided his sense of the market, suggesting U.S. oil-directed activity is stable in the high $50s to low $60s WTI range. For Canada, he believes the threshold for customer concern is lower, potentially in the low $50s, due to the exchange rate and narrowed differentials. He cautioned that these are not hard thresholds provided by customers.

John Gibson requested details on international rig margins, the status of potential rig activations, and an update on day rates and margins for the Super Single rigs in Canada.

Answer

CFO Carey Ford stated that specific international margins are not disclosed but are better than mid-cycle North American margins. CEO Kevin Neveu added there was no news on international activations after an unsuccessful bid in Saudi Arabia. For Super Singles, he reiterated margin guidance of $7,000-$14,000/day, with pad-equipped rigs at the high end, and noted plans to convert more rigs to pad style.

John Gibson from BMO Capital Markets inquired about the quantifiable financial impact from the severe weather in Australia during Q1 and asked about the drivers behind the improving performance in the oil sands business.

Answer

Executive Jason Veenstra quantified the weather impact in Australia at approximately 5% to 7% of gross profit margin, or about a $10 million impact. Executive Joseph Lambert explained that the oil sands improvement is due to greater operational efficiency and strong demand, and he anticipates modest year-over-year growth in that segment.